Iran is experiencing ever-increasing domestic energy consumption and CO2 emissions, mostly due to its price control policy. The first step in designing any conservation policy is the quantification of sectoral total, direct and indirect energy intensities to track the sectors or commodities responsible for increasing energy consumption and CO2 emissions. Energy input-output (E-IO) analysis is a frontier method for assessing resource and pollutant embodiments in goods and services on a macroeconomic scale that is popular among researchers. This paper is the first attempt to apply this approach to quantify energy and energy-related CO2 emissions in Iran. Based on the results, the sectors with the highest potentials for conservation, which are simultaneously the main consumers of energy and have the highest energy intensities, are the road transportation sector, the sectors that produce basic mineral, metal and chemical products, the construction sector, the food industry and the agricultural and livestock sectors. Although the energy consumption pattern is distorted by cheap energy prices, our study shows that the energy theory of value still applies in Iran.

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